Automotive Industry 2023

Payment Culture in the Automotive & Components Sector

Late and slow payment is a persistent challenge faced by small businesses in the Automotive & Components sector in the UK. In 2023, this issue continues to threaten the financial stability and growth of small businesses in the industry.

The Automotive & Components sector is a vital part of the UK economy, with a significant contribution to employment and GDP. However, small businesses in this sector are often reliant on large manufacturers for their revenue. These manufacturers may delay payment or stretch out payment terms, causing cash flow issues for small businesses.

In our analysis we look at largest companies in Automotive & Components and feature the 12 slowest and 12 fastest payers in the sector. If we compare last year to this year, we can clearly see the difference in payment cultures. The worst are getting worse, with 9 out of the 12 slowest payers remained the same or got even slower to pay and the best are getting better, with 10 out of the 12 fastest payers remaining the same or paying even faster. These trends tell us there is a clear difference in attitude and culture around those who choose to pay their suppliers fast, or slow.

Inesos UK (reducing their average payment time from 33 days to 8 days) and Car Giant (reducing their payment time from 29 days to 8 days) should be congratulated for doing an excellent job at reducing their already impressive payment times. However, Ferraris Piston Services remains one of the worst in the sector (increasing their average payment time from 92 to 101 days) and Stapletons Tyre Services (increasing their average payment time from 87 to 97 days) both have shown that improving their slow payment practices to suppliers is not a priority.

The impact of late and slow payment in this sector can be devastating. Small businesses may struggle to meet their own financial obligations, such as paying suppliers, wages, and taxes. This can lead to a spiral of debt, missed opportunities, and ultimately, business failure.

In conclusion, late and slow payment continues to pose significant challenges to small businesses in the Automotive & Components sector in the UK in 2023. While there are measures in place to address the issue, small businesses must take proactive steps to mitigate its impact and safeguard their financial stability and growth.

CompanyAverage time to pay 2022% Invoices paid within 30 daysSupply-chain financing offered
FERRARIS PISTON SERVICE LIMITED923
STAPLETON'S (TYRE SERVICES) LIMITED8722
ARCONIC MANUFACTURING (GB) LIMITED8831
FEDERAL-MOGUL FRICTION PRODUCTS LIMITED849
3M UNITED KINGDOM PUBLIC LIMITED COMPANY10530
TI GROUP AUTOMOTIVE SYSTEMS (DEESIDE) LIMITED5310
HALFORDS GROUP PLC7212
BORGWARNER TECHNOLOGIES LIMITED788
ADIENT SEATING UK LTD71101
DELPHI TECHNOLOGIES LIMITED699
SERTEC AUTO STRUCTURES (UK) LIMITED4935
GKN AUTOMOTIVE LIMITED53361
MICHELDEVER TYRE SERVICES LIMITED726
PIRELLI UK TYRES LIMITED6111
ABB LIMITED698
MCLAREN AUTOMOTIVE LIMITED6613
MCLAREN RACING LIMITED6012
ZF AUTOMOTIVE UK LIMITED60131
ASTON MARTIN LAGONDA LIMITED629
KOITO EUROPE LIMITED5916
WEBASTO ROOF SYSTEMS LTD.5016
SAINT-GOBAIN LIMITED5142
JAGUAR LAND ROVER LIMITED5810
ESSENTRA COMPONENTS LIMITED5619
PEUGEOT CITROEN AUTOMOBILES UK LIMITED5946
CUMMINS LTD.52261
MILLBROOK PROVING GROUND LIMITED5025
DENSO MANUFACTURING UK LTD.3830
SUEZ RECYCLING AND RECOVERY HOLDINGS UK LTD5223
NISSAN MOTOR MANUFACTURING (UK) LIMITED5191
NSK BEARINGS EUROPE LIMITED5129
BANDVULC TYRES LTD5126
VERTU MOTORS PLC5325
GS YUASA BATTERY MANUFACTURING UK LIMITED4813
CRODA EUROPE LIMITED4725
PORSCHE CARS GREAT BRITAIN LIMITED4052
EVOBUS (UK) LIMITED3155
EUROPEAN TYRE ENTERPRISE LIMITED6151
KAUTEX UNIPART LIMITED4325
INTERTEK INTERNATIONAL LIMITED3943
GRUPO ANTOLIN LEAMINGTON LIMITED4724
DAU DRAEXLMAIER AUTOMOTIVE UK LIMITED3095
BRIDGESTONE EUROPE NV/SA, UK BRANCH4724
SCHAEFFLER (UK) LIMITED4422
CONTINENTAL TYRE GROUP LTD.4924
HONDA MOTOR EUROPE LIMITED3520
SUBARU (UK) LIMITED5831
ISUZU TRUCK (UK) LIMITED4138
UNIPART GROUP LIMITED4139
G-TEKT EUROPE MANUFACTURING LIMITED4016
VOLKSWAGEN GROUP UNITED KINGDOM LIMITED3561
PILKINGTON AUTOMOTIVE LIMITED37341
SOUTHERN TYRE CO LIMITED3758
INTERNATIONAL MOTORS LIMITED 50
RICARDO UK LIMITED4047
TOYOTA(G.B.) PLC3644
NORGREN LIMITED3542
KIA UK LIMITED3339
ROLLS-ROYCE MOTOR CARS LIMITED3350
ROBERT BOSCH LIMITED3768
SILVER STREET AUTOMOTIVE LIMITED4839
BABCOCK VEHICLE ENGINEERING LIMITED4359
VOLVO CAR UK LIMITED3770
KOYO BEARINGS (EUROPE) LIMITED3459
MOTUS GROUP (UK) LIMITED3356
SUMITOMO ELECTRIC EUROPE LIMITED3367
S.G. SMITH (MOTORS) BECKENHAM LIMITED3253
I.M. PARTS AND SERVICE LIMITED4741
SYTNER CARS LIMITED3342
BROSE LIMITED30551
VOSPERS MOTOR HOUSE LIMITED3449
MON MOTORS LIMITED2573
SANDOWN MOTORS LIMITED3043
AUTONEUM GREAT BRITAIN LIMITED2782
LOMOND MOTORS LIMITED4028
BOC LIMITED2949
PEUGEOT MOTOR COMPANY PLC34
TI GROUP AUTOMOTIVE SYSTEMS LIMITED38
VAUXHALL MOTORS LIMITED4417
GREVAN CARS LIMITED2952
BASF PUBLIC LIMITED COMPANY3233
CAMBRIA AUTOMOBILES (SOUTH EAST) LIMITED1778
DRAPER TOOLS LIMITED2682
LEYLAND TRUCKS LIMITED2475
IMI PRECISION ENGINEERING LIMITED24
MERCEDES-BENZ CARS UK LIMITED2384
NISSAN MOTOR (GB) LIMITED23
SUZUKI GB PLC2678
OCEAN AUTOMOTIVE (BODYSHOPS) LIMITED1975
FIAT CHRYSLER AUTOMOBILES UK LTD2278
MITSUBISHI CORPORATION INTERNATIONAL (EUROPE) PLC2186
RYBROOK CARS LIMITED2172
FRAZER-NASH CONSULTANCY LIMITED2276
RENAULT TRUCK COMMERCIALS LIMITED2380
NORTON WAY MOTORS LIMITED2167
ARNOLD CLARK AUTOMOBILES LIMITED1581
MAZDA MOTORS UK LIMITED1293
BMW (UK) LIMITED1894
ALD AUTOMOTIVE LIMITED995
BRITISH CAR AUCTIONS LIMITED990
INEOS UK E&P HOLDINGS LIMITED3374
CAR GIANT LIMITED2949
FCA AUTOMOTIVE SERVICES UK LTD698

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